KANSAS CITY, KAN. – A Kansas business owner is behind bars after being sentenced to 17 months in prison for failing to pay taxes.
Marvin Vail, 53, of Gardner was found guilty of one count of failure to account for and pay over employment taxes. The charges stem from Vail’s time as the owner and operator of Marvin’s Tow Service, Inc. in Gardner, Kansas.
According to court documents, Vail failed to pay employment taxes for at least 23 calendar quarters between 2012-2017. Employers are required to withhold Federal Insurance Contribution Act (FICA) taxes and income taxes from the wages paid to their employees and then forward the withheld amounts to the IRS.
When questioned by IRS-Criminal Investigation agents, the office administrator for Marvin’s Tow Service claimed that Vail would not allow them to pay the owed federal taxes.
As part of his sentence, a federal judge ordered Vail to pay the IRS $1,512,283 in restitution.
The IRS-Criminal Investigation investigated the case, and Assistant U.S. Attorney Scott Rask prosecuted. Marvin Vail is currently serving his sentence.
The case serves as a reminder of the importance of complying with tax laws and the consequences of failing to do so.
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Key Facts
- State: Kansas
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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